Bank of America announced today that it has reached an agreement to pay $460.5 million to settle class action securities litigation involving Worldcom.
Under the terms of the settlement agreement, which is subject to court approval, subsidiaries of Bank of America Corporation that are named as defendants in the litigation will make a payment of $460.5 million to the settlement class. Plaintiff’s attorney’s fees will be paid out of the settlement.
Under the settlement, Bank of America denied that it violated any law and explained that it settled the matter in order to eliminate the uncertainties, expense and distraction of further litigation. Bank of America said in a statement that it believes it is in the best interests of the company to resolve these claims and put this litigation behind it.
The expense of the settlement was provided for in prior periods.
The suit is pending in the United States District Court for the Southern District of New York.
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